According to a trader, Bitcoin is “identical” to the 2020 breakout, keeping its value at $23.5K

Traders on Bitcoin (BTC)

Although Bitcoin is far from making everyone optimistic, several sources indicate that BTC price charts now display traditional bull market structures.

On February 4, bulls refused to relinquish support in after-hours trading, and Bitcoin hovered around $23,500.

The price of bitcoin brings back images of the 2020

As traders waited for the release of US macroeconomic data, there was some volatility but no change in the overall trend heading into the weekend.

However, opinions regarding the outlook for the longer term varied, with some stating that there was little reason to believe that Bitcoin’s rally would continue.

Popular trader Crypto Tony summed up the day in a portion of a tweet, “Seeing $50,000 calls already on Bitcoin and we have yet to complete a higher high and higher low market structure change.”

Credible Crypto, a fellow trader, was more optimistic, doubling down on a theory that compared the current price of BTC to that of late 2020, shortly after Bitcoin had reached its previous all-time high in 2017.

“Off our lows, price action has developed beautifully, emulating the bottom formation that came before our last impulse from 10k-60k+. From that impulse, the current consolidation (circled in green) also appears identical to PA,” he wrote in an update to a related Twitter thread.

“BTC may continue to pump while most wait for a pullback…”

Others were concerned about the U.S. dollar’s recovery, which could have a broad impact on risk assets if it continued.

For well-known trader Bluntz, the U.S. Dollar Index (DXY) was “ringing up alarm bells,” and he revealed a transition into stablecoins.

“Do we think the DXY is already done on the upside after such a long and deep sell-off? I don’t. “Lotta shorts to squeeze yet,” macro investor David Brady said about the dollar’s fall in Q3 2022 from its highs of twenty years earlier.

RSI on the verge of “bullish continuation”

Rekt Capital, a trader, and analyst looked for a possible cue for Bitcoin to dip before continuing higher, focusing on monthly timeframes.

This was shown by its relative strength index (RSI), which reclaimed a crucial support level in January after recovering from all-time lows.

While he acknowledged that Bitcoin markets “haven’t really seen double bottoms” in terms of RSI historically, he argued that there was still a possibility of a subsequent higher low.

Rekt Capital conducted a survey on Twitter as well, and the results indicated that there should be a slight decline in BTC/USD.